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VIII. The City and the District agree that this Agreement is in the best interests of the <br />City, the District, and the residents and businesses in the L -3 area. Therefore, <br />the City and the District hereby agree and endorse this Agreement as being in <br />the best interests of their respective constituents. <br />IX. The City and District hereby agree that each has taken the appropriate steps <br />necessary to authorize and approve the Agreement stated herein. Specifically, <br />the City Council took action at its meeting on and approved <br />the terms and conditions set forth herein, and has authorized and directed the <br />City Manager to enter into this final agreement regarding the matters stated <br />herein. Similarly, the District Board of Directors has also taken action at its <br />meeting on , and approved the terms and conditions set forth <br />herein and authorized the execution of this final agreement. <br />X. The City shall indemnify, defend and hold harmless the District and its officials, <br />officers, employees, agents, and volunteers from and against any and all losses, <br />liability, claims, suits, actions, damages, and causes of action arising out of any <br />personal injury, bodily injury, loss of life, or damage to property, or any violation <br />of any federal, state, or municipal law or ordinance, to the extent caused, by (a) <br />the willful misconduct, negligent violations of law, or negligent acts or omissions <br />of the City or its officials, officers, employees, agents and volunteers, or (b) acts <br />for which they could be held strictly liable. The foregoing obligation of the City <br />shall not apply when (1) the injury, loss of life, damage to property, or violation <br />of law arises wholly from the negligence or willful misconduct of the District or its <br />officers, employees, agents, or volunteers and (2) the actions of the City or its <br />employees, subcontractors, or City Council approved and authorized agents <br />have contributed in no part to the injury, loss of life, damage to property, or <br />violation of law. It is understood that the duty of the City to indemnify and hold <br />harmless includes the duty to defend as set forth in Section 2778 of the <br />California Civil Code and authorized by Government Code section 895.4. <br />In addition, the City agrees to indemnify and defend the District against any and <br />all demands, losses, liability, claims, suits, actions, damages, causes of action <br />and customer complaints (together, the "Claims ") arising out of the provision of <br />free services to L -3 area customers as provided for herein. The foregoing <br />obligation of the City will arise only upon City's express written acceptance of <br />a tender from the District to respond to any such Claims, which shall be City's <br />express desire for the District to continue to provide services at no cost to L -3 <br />area customers until such obligation is terminated by the Parties by a separate <br />written amendment to Section III. If City does not respond within 15 days to <br />District's tender or rejects an aforementioned tender, District shall have no <br />further obligation to provide services at no cost to the L -3 area customers, and <br />may charge for services provided from the date tender is rejected. Upon City <br />rejection of a tender and simultaneous extinguishment of District obligation to <br />provide free services to L -3 area customers, District understands and agrees <br />that City's obligation to indemnify and hold harmless District for any and <br />